Gold prices in India traded flat with a positive bias on the Multi Commodity Exchange (MCX) Tuesday tracking gains in international spot prices amid a weak US dollar.

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At 10:30 am, gold futures for August delivery rose 0.08 percent to Rs 47,810 per 10 grams as against the previous close of Rs 47,774 and the opening price of Rs 47,875 on the MCX. Silver futures traded 0.02 percent higher at Rs 69,392 per kg. The prices opened at Rs 69,609 as compared to the previous close of Rs 69,375 per kg.

“The gold prices are trading flat amid mixed cues. Weak US dollar and rising uncertainty over economic growth due to the fast spread of Covid Delta variant is supporting the safe-haven appeal for the yellow metal,” said Ajay Kedia, Director, Kedia Advisory.

International gold prices edged higher on Tuesday as the dollar weakened ahead of the release of US inflation data, increasing the appeal of the metal for holders of other currencies, said a Reuters report.

Spot gold rose 0.2 percent to $1,808.70 per ounce, while US gold futures were 0.2 percent higher at $1,809.80.

“Investors will closely watch for the US consumer price index (CPI) report and the Fed Chairman Jerome Powell’s testimony before Congress for his response to the inflation data. The general bias for gold and silver remains positive and investors are advised to us buy on drop strategy,” Kedia said.

“On MCX, gold may find support at Rs 47,400 and resistance at Rs 48,200. Support for silver is seen at Rs 68,400 and resistance is placed at Rs 71,000,” he added.

The dollar index edged 0.1 percent lower against rivals. A drop in benchmark 10-year Treasury yields last week to the lowest in nearly five months also helped the non-yielding metal.

“Gold continues to tread a fine line between rates and inflation threats while managing to stay above $1,800 an ounce level from past few days. The yearly average for the gold is at $1.830 while 100 DEMA is placed at $1,788 which will be the key range where gold prices will like to spend time for next few days. US equity benchmark markets and increasing currency are also curtailing the momentum in the precious metal,” said Sandeep Matta, Founder, TRADEIT Investment Advisor.

On the domestic front, strength in the Indian rupee amid buying in the domestic equity market is limiting gains in gold prices.

“Gold on MCX also traded on expected lines yesterday and has given an opportunity to accumulated gold around the pivot levels. Technically the bulls have a slight near term advantage however Rs 48,000 will again be a key resistance level today for the gold to pass and sustain,” Matta said.

Here are gold rates across major cities:

Here are silver rates across major cities:

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First Published:Jul 13, 2021 10:46 AM IST